The Rupee opened under pressure this week as traders gauge how sternly the Reserve Bank of India will defend the currency, with geopolitical risks adding to the headwinds confronting the South Asian currency. Meanwhile, the bond market will track RBI liquidity actions and developments around the possible inclusion of Indian bonds in Bloomberg's Global Aggregate Index later this year. The rupee closed at 90.1625 per dollar on Friday, little changed week-on-week. Growing supply worries linked to intensifying protests in oil-producing Iran and an escalation of attacks in Russia's war in Ukraine pushed up oil prices by about 4%. Over the weekend, Tehran threatened on Sunday to retaliate against Israel and U.S. military bases in the event of U.S. strikes on Iran. U.S. President Donald Trump has repeatedly threatened to intervene in recent days. The developments could add to the pressure on the rupee, leaving traders focused on how sternly the central bank acts to defend the currency. India's foreign exchange reserves fell $9.8 billion in the week ended January 2 to $686.8 billion, the steepest weekly drop in more than a year. The 10-year benchmark 6.48% 2035 yield settled at 6.6401% on Friday, up for a second consecutive week amid supply worries. Traders expect the yield to move in a 6.60%–6.70% range, with continued attention on the overall demand-supply scenario as well as the central bank's liquidity action. Indian states will borrow 5 trillion rupees ($55.47 billion) in January-March, while the federal government plans to borrow more than 3 trillion rupees, the highest aggregate quarterly debt supply. This expectation is primarily driven by the higher supply, and in addition, rise in long-dated state bonds as compared to past years, he added. The RBI will buy bonds worth 500 billion rupees on Monday, followed by a similar purchase on January 22. Traders will watch out for the notes it includes for the next operation. The U.S. dollar retreated from its strongest in a month early on Monday, as U.S. prosecutors opened a ceiminal investigation into Federal Reserve Chair Jerome Powell, adding to tensions with the Trump administration. The dollar index , which measures the greenback's strength against a basket of six currencies, was last 0.3% lower at 98.899, snapping a five-day winning streak. Gold jumped to a record $4,563.61 per ounce after the New York Times reported the investigation and Powell issued a video statement defending the central bank's independence. Against the yen , the U.S. dollar was last 0.2% lower at 157.56 yen, edging back from its strongest in a year after the head of Japanese Prime Minister Sanae Takaichi's coalition partner said on Sunday she may hold a snap election. Against the Chinese yuan trading offshore in Hong Kong , the U.S. dollar was 0.1% weaker at 6.968 yuan, its softest in a week. Oil prices were little changed on Monday as investors eyed potential supply disruptions from OPEC producer Iran amid intensifying protests, although efforts to quickly resume oil exports from Venezuela kept a lid on prices. Brent crude futures slipped 5 cents to $63.29 a barrel by 0131 GMT while U.S. West Texas Intermediate crude was at $59.06 a barrel, down 6 cents.on February 8 or 15. On Friday, media had reported she was considering a vote that month citing government sources. The euro was last 0.2% stronger at $1.1664, rebounding from a one-month low.......